Cement Industry Welcomes "Material Supply Stabilization Council"... Urges Cautious Approach to Imports

"Construction Industry, Hope to Regain Vitality Quickly"
"Sharp Demand Drop and Environmental Regulations Make Securing Adequate Profits Difficult"

The government’s decision to form a supply stabilization consultative body for major construction materials as a measure to stabilize construction costs was met with a positive response from the cement industry. However, concerns were raised regarding the official support for the import of Chinese cement.

A cargo truck has stopped operating at a cement factory. Photo by Jinhyung Kang aymsdream@

On the 2nd, the Korea Cement Association welcomed the government’s ‘Construction Cost Stabilization Plan for Revitalizing the Construction Industry,’ stating, “We actively welcome the government’s timely decision to form and operate a supply stabilization consultative body by material.” They added, “We hope this will help the construction industry regain vitality quickly and improve the business conditions of major material industries.”

The government plans to create supply stabilization consultative bodies for major materials such as cement to encourage voluntary price adjustments between demand and supply parties. Discussions will be centered around industry groups like the Cement Association and the Construction Association, with participation from relevant ministries and public interest commissioners.

In response, the Cement Association emphasized, “Cement is the ‘rice of construction.’ The cement industry has contributed significantly to improving the quality of life for the public by supplying products in large quantities at affordable prices, while the construction industry has built safe housing and social infrastructure based on high-quality cement.”

Furthermore, the Cement Association stated, “The construction and cement industries are important upstream and downstream sectors, and sustainable development cannot be discussed without organic cooperation between the two industries.” They expressed hope that the consultative body will go beyond a ‘pinpoint solution’ focused on revitalizing the construction industry to diagnose the entire industrial ecosystem linked to construction, discuss ‘comprehensive solutions’ to overcome crises, and expand mutual understanding and communication between the two industries.

The Cement Association also agreed on the need for a government-wide effort to revitalize the construction market, saying, “We once again promise to make every effort to establish reasonable measures through mutual communication and cooperation with relevant ministries and agencies for future supply stabilization.”

However, they voiced concerns about the government’s plan to support private imports of overseas cement, emphasizing, “It must be approached cautiously as it poses a significant risk of undermining the domestic key industry base.”

Meanwhile, the Cement Association explained, “Due to the severe downturn in the construction market, cement demand this year (expected to be around 44 million tons) is projected to decline beyond the demand cliff during the first year of the IMF financial crisis (about 46.3 million tons). Additionally, inventory has surged, causing a serious double burden.” They added, “All available resources are being invested in facility expansion necessary to comply with strengthened environmental regulations such as greenhouse gas reduction targets and nitrogen oxide emission controls, making it very difficult to secure adequate profits needed for stable operations.”

This content was produced with the assistance of AI translation services.